Request for Comments on Proposed Modifications: China's Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation
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Abstract
In a notice published on September 18, 2024, the U.S. Trade Representative announced certain modifications to the actions taken in the Section 301 investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation, including imposing additional Section 301 duties or increasing the rate of existing Section 301 duties, on certain products of China in strategic sectors. Additionally, the U.S. Trade Representative proposed increasing Section 301 tariff rates on five subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) covering certain tungsten products, wafers, and polysilicon. This notice announces that USTR will open an electronic portal on September 23, 2024 for interested parties to submit comments on the proposed tariff increases for the five subheadings.
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<title>Federal Register, Volume 89 Issue 185 (Tuesday, September 24, 2024)</title>
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[Federal Register Volume 89, Number 185 (Tuesday, September 24, 2024)]
[Notices]
[Pages 77958-77959]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-21773]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Request for Comments on Proposed Modifications: China's Acts,
Policies and Practices Related to Technology Transfer, Intellectual
Property and Innovation
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Request for comments.
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SUMMARY: In a notice published on September 18, 2024, the U.S. Trade
Representative announced certain modifications to the actions taken in
the Section 301 investigation of China's acts, policies, and practices
related to technology transfer, intellectual property, and innovation,
including imposing additional Section 301 duties or increasing the rate
of existing Section 301 duties, on certain products of China in
strategic sectors. Additionally, the U.S. Trade Representative proposed
increasing Section 301 tariff rates on five subheadings of the
Harmonized Tariff Schedule of the United States (HTSUS) covering
certain tungsten products, wafers, and polysilicon. This notice
announces that USTR will open an electronic portal on September 23,
2024 for interested parties to submit comments on the proposed tariff
increases for the five subheadings.
DATES: September 23, 2024, at 12:01 a.m. EDT: The public docket on the
web portal at <a href="https://comments.ustr.gov">https://comments.ustr.gov</a> will open for interested
persons to submit comments on the proposed additional modifications.
October 22, 2024, at 11:59 p.m. EST: To be assured of
consideration, submit written comments on the public docket by this
date.
FOR FURTHER INFORMATION CONTACT: For general questions about this
notice, contact Philip Butler and Megan Grimball, Chairs of the Section
301 Committee at 202.395.5725. For specific questions on customs
classification, contact <a href="/cdn-cgi/l/email-protection#6b1f190a0f0e190e060e0f122b08091b450f0318450c041d"><span class="__cf_email__" data-cfemail="196d6b787d7c6b7c747c7d60597a7b69377d716a377e766f">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
A. Background
For background on the proceedings in this investigation, please see
the prior notices including 82 FR 40213 (August 24, 2017), 83 FR 14906
(April 6, 2018), 83 FR 28710 (July 6, 2018), and 83 FR 40823 (August
23, 2018).
On September 8, 2022, USTR announced that in accordance with
Section 307(c)(3) of the Trade Act (19 U.S.C. 2417(c)(3)), the U.S.
Trade Representative would conduct a review of the two actions taken,
as modified, in this investigation. See 87 FR 55073.
Based on information obtained during the review, USTR, in
consultation with the Section 301 Committee, prepared a comprehensive
report that included findings on the effectiveness of the actions taken
in this investigation in achieving the objectives of the investigation,
other actions that could be taken, and the effects of such actions on
the United States economy, including consumers. The report, Four-Year
Review of Actions Taken in the Section 301 Investigation: China's Acts,
Policies, and Practices Related to Technology Transfer, Intellectual
Property, and Innovation (Report), was published on May 14, 2024, and
is available on the USTR website.
On May 14, 2024, taking into consideration the U.S. Trade
Representative's findings in the Report and recommendations, the
President issued a Memorandum (President's Memorandum) that directed
the U.S. Trade Representative to: ``maintain, as appropriate and
consistent with this memorandum, the ad valorem rates of duty and lists
of products subject to the [actions] taken under the Section 301
investigation'' and ``[t]o further encourage China to eliminate the
acts, policies, and practices at issue, and to counteract the burden or
restriction of these acts, policies, and practices, the Trade
Representative shall modify the [actions taken in the investigation] to
increase Section 301 ad valorem rates of duty'' for certain specified
products of China. See <a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/14/memorandum-on-actions-by-the-united-states-related-to-the-statutory-4-year-review-of-the-section-301-investigation-of-chinas-acts-policies-and-practices-related-to-technology-transfer-intellectua/">https://www.whitehouse.gov/briefing-room/presidential-actions/2024/05/14/memorandum-on-actions-by-the-united-states-related-to-the-statutory-4-year-review-of-the-section-301-investigation-of-chinas-acts-policies-and-practices-related-to-technology-transfer-intellectua/</a>. In particular, the President's
Memorandum specified 14 categories of products for proposed tariff
increases, tariff rates for those products, and year for tariff
increases.
The President also directed the U.S. Trade Representative to
establish a process by which interested persons may request that
particular machinery used in domestic manufacturing classified within a
subheading under Chapters 84 and 85 of the HTSUS be temporarily
excluded from Section 301 tariffs, and directed the U.S. Trade
Representative to prioritize, in particular, exclusions for certain
solar manufacturing equipment.
B. Proposed Modifications
Consistent with the President's direction, USTR issued a Federal
Register notice with proposed modifications, including proposed
increases in Section 301 duties on 382 HTSUS subheadings and 5
statistical reporting numbers of the HTSUS, with an approximate annual
trade value of $18 billion (2023). See 89 FR 46252 (May 28, 2024) (May
28 notice).
In accordance with Section 307(a)(2) of the Trade Act (19 U.S.C.
2417(a)(2)), USTR invited comments from interested persons and opened a
30-day docket on May 29, 2024 (USTR-2024-0007). With respect to the
proposed tariff increases, USTR requested commenters to address the
effectiveness of the proposed modification, the effects of the proposed
modification on the U.S. economy, including consumers, and whether the
tariff subheadings or statistical reporting numbers identified for each
product or sector adequately cover the products and sectors included in
the President's direction to the U.S. Trade Representative.
On September 18, 2024, the U.S. Trade Representative announced
modifications to the actions, including certain adjustments to the
modifications proposed in the May 28 notice. See 89 FR 76581 (September
18 notice). Additionally, and based on comments requesting that certain
HTSUS subheadings be added to the 382 HTSUS subheadings proposed for
tariff increases, the U.S. Trade Representative proposed increasing
Section 301 duties on 5 additional HTSUS subheadings. Specifically, the
U.S. Trade Representative proposed increasing tariffs to 25 percent for
3 subheadings covering certain tungsten products and proposed
increasing tariffs to 50 percent for 2 subheadings covering wafers and
polysilicon. See 89 FR 76581. The September 18 notice also announced
that USTR would publish a separate notice with procedures for
interested parties to provide views on the five subheadings proposed
for tariff increases.
The five subheadings proposed for tariff increases are:
<bullet> 8101.94.00 (Tungsten, unwrought (including bars and rods
obtained simply by sintering)).
<bullet> 8101.99.10 (Tungsten bars and rods (o/than those obtained
simply by sintering), profiles, plates, sheets, strip and foil).
<bullet> 8101.99.80 (Tungsten, articles nesoi).
<bullet> 2804.61.00 (Silicon containing by weight not less than
99.99 percent of silicon).
<bullet> 3818.00.00 (Chemical elements doped for use in
electronics, in the form of discs, wafers etc., chemical compounds
doped for electronic use).
[[Page 77959]]
C. Request for Public Comments
In accordance with Section 307(a)(2) of the Trade Act (19 U.S.C.
2417(a)(2)), USTR invites comments from interested persons with respect
to the proposed modifications. To be assured of consideration, you must
submit written comments by October 22, 2024. With respect to USTR's
proposed tariff increases on the five subheadings listed in Section B,
interested persons are invited to comment on:
<bullet> The extent to which the proposed modification would
enhance the effectiveness of the tariff actions in obtaining the
elimination of or in counteracting China's acts, policies, and
practices related to technology transfer, intellectual property and
innovation.
<bullet> The likely effects of the proposed modification on the
U.S. economy, including consumers.
D. Procedures for Written Submissions
You must submit written comments using the appropriate docket on
the portal at <a href="https://comments.ustr.gov/">https://comments.ustr.gov/</a>. To submit written comments,
use the docket on the portal entitled Request for Comments: Proposed
Modifications to the Section 301 Actions, docket number USTR-2024-0016.
You do not need to establish an account to submit comments. The first
screen of the docket allows you to enter identification and contact
information. Third party organizations such as law firms, trade
associations, or customs brokers, should identify the full legal name
of the organization they represent, and identify the primary point of
contact for the submission. Information fields are optional; however,
your comment may not be considered if insufficient information is
provided.
Fields with a gray Business Confidential Information (BCI) notation
are for BCI that will not be made publicly available. Fields with a
green (Public) notation will be viewable by the public.
After entering the identification and contact information, you can
complete the remainder of the comment, or any portion of it by clicking
`Next.' You may upload documents at the end of the form and indicate
whether USTR should treat the documents as business confidential or
public information.
Clearly mark any page containing BCI as `BUSINESS CONFIDENTIAL' on
the top of that page and clearly indicate, via brackets, highlighting,
or other means, the specific information that is BCI. If you request
business confidential treatment, you must certify in writing that the
information would not customarily be released to the public.
Parties uploading attachments containing BCI also must submit a
public version of their comments. If these procedures are not
sufficient to protect BCI or otherwise protect business interests,
please contact the USTR Section 301 support line at 202.395.5725 to
discuss whether alternative arrangements are possible. USTR will post
attachments uploaded to the docket for public inspection, except for
properly designated BCI. You can view submissions on USTR's electronic
portal at <a href="https://comments.ustr.gov">https://comments.ustr.gov</a>.
Juan Millan,
Acting General Counsel, Office of the United States Trade
Representative.
[FR Doc. 2024-21773 Filed 9-23-24; 8:45 am]
BILLING CODE 3390-F4-P
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